Imperial says Kearl oil sands production could begin in "weeks"

CALGARY, Alberta

CALGARY, Alberta Jan 2 Imperial Oil Ltd's
Kearl oil sands project in northern Alberta could start
commercial production in the coming weeks after a previous
target was delayed from the end of December, a company spokesman
said on Wednesday.

The 110,000 barrel a day bitumen development has been
undergoing commissioning operations over the past several weeks
in preparation for oil production.

"We're continuing the start-up process at Kearl and timing
of first oil, expected in early 2013, will be dependent on our
progress in the coming weeks," spokesman Pius Rolheiser said in
an email.

Traders have said that impending production from the C$10.9
billion ($11 billion) development has been one factor behind a
recent deepening of discounts on Canadian heavy oil, as export
pipeline capacity remains limited.

Last month, Imperial Chief Executive Bruce March said he
expected production from the project, which has been under
construction since 2009, to slip from a previous target of late
2012 into 2013.

Imperial and its majority owner, Exxon Mobil Corp,
are partners in Kearl, which will be Canada's fifth tar sands
mining venture.